IDEAS home Printed from https://ideas.repec.org/p/aub/autbar/978.25.html
   My bibliography  Save this paper

A few things you always wanted to know about multipliers,but were afraid to ask

Author

Listed:
  • Ferran Sancho

Abstract

Policy evaluation relies on validated modelling tools. Among these, the interindustry model is one of the most widely used, primarily due to its mathematical simplicity, which facilitates the calculation of economy- wide multiplier effects resulting from policy-induced changes in final demand. However, this simplicity can lead to conceptual narrowness, potentially overlooking broader contextual factors. As Oosterhaven (2017, 2022) highlights, the issue of multipliers has two key dimensions: the numerical calculations themselves and, more importantly, the modelling assumptions underlying these calculations, as they ultimately determine the relevance and validity of policy-related results. In this text, we explore this issue by comparing the various outcomes that arise under different scenarios regulating the economy's adjustment to policy-induced changes. Our findings suggest that classical multipliers may provide a biased perspective on an economy's structural behaviour.

Suggested Citation

  • Ferran Sancho, 2025. "A few things you always wanted to know about multipliers,but were afraid to ask," UFAE and IAE Working Papers 978.25, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:978.25
    as

    Download full text from publisher

    File URL: http://pareto.uab.es/wp/2025/97825.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aub:autbar:978.25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Xavier Vila (email available below). General contact details of provider: https://edirc.repec.org/data/ufuabes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.